Contrary to many theories on saving money and avoiding expenses for the rainy day, it is also equally important to spend where you should. Let us discuss a few expenses that are essential to spend and conserving cash under these heads is not an encouraging idea.
Investing in your education is a wise use of money. But ensure that your education helps you getting an appropriate job or keeps you up to date on your profession or directly or indirectly help you to generate an income. Similarly, investing in education for your children is one of the must things you can do for your kids.
Everyone will agree that spending on health-related expenses are vital and there are no two opinion about it. Preventive measures, even if they cost you bit extra, and finding ailments so things do not turn into something worse in the future are important. Spend money on staying health wealthy, whether it could be subscription to a good gym, balanced diet or visiting your doctor regularly for check-ups.
It is always a good idea to spend a little bit more money on improving your home as after a tiring day of work, when you reach your home it should have a good ambience to relax and of course it will increase the value of the house. Further, enhance the life of what you have and avoid spending money on new items such as equipment, car, furniture, etc. The amount that you spend on timely repairs and maintenance may only be a fraction of the replacement cost.
In the prevailing information and internet age, a quality computer is an important item to have. Often, heavily used existing computer will create problem and decrease your efficiency. Frequently, we all use the computer for browsing internet, checking email, word, excel, power point presentation, organising photos and videos. Not all computer users’ requirements are equal, so you choose a good computer based on your current and near future requirements.
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Stress not only deteriorate your health but most importantly it can ruin relationships. It can hamper performance at work and can affect decision-making when it comes to finances. It is essential for you to know what reduces your stress and keep that expense in your budget. For example, a vacation once in six months may seems to be a luxury when there is not enough money, but vacation and going to new places is a known stress reliever and can greatly help your health and mental state. It is important for everyone to know where to spend money and where to conserve for a sound financial status.
The writer in associate professor of finance & accounting, IIM Shillong